How the non-taxable child benefit is to turn into taxable income!
As a complex way of restricting the child benefit to those with income up to £50,000 per year, from 7 January 2013 the benefit will be taxed. And we thought the idea was to simplify the workings of the benefits and tax systems!
There are marginal tax rate traps galore for this one, as if your income is between £50,000 – £60,000 (when the benefit is clawed back completely through the tax system) the marginal tax rate can be up to a staggering 71%! That would be the case if you have 4 children, but there are plenty of other odd and unacceptable situations when the marginal rate bites hard if your income is between those magic figures when your top tax rate should really be 40%.
Please contact us to discuss the opportunities to avoid this trap by reference to your own circumstances.
Guide to selling your business
Your simple guide to helping you maximise the value in your business.
Sign up to receive alerts
Call us on 01628 770 770 for a no-obligation chat
You may also be interested in...
May 2024 – Tax News
It’s full steam ahead as we head towards summer and as ever there’s always something interesting to report on the tax front. WANT TO BE PART OF BETA TESTING OF MTD FOR INCOME TAX? Although making tax digital income tax self assessment (MTD ITSA) is…
Property Newsletter – May 2024
Welcome to our monthly newsletter for property landlords. We hope you find this informative and please contact us to discuss any matters further. Furnished Holiday Lettings: Reaction In Budget 2024, which took place on 6 April, the Chancellor…
New Head of Corporate Finance at Wilson Partners
We’re excited to announce some changes within the Corporate Finance Team. As of March 2024, Adam Wardle will be leading the drive to acquire businesses similar to ourselves, with like-minded team and a culture that will complement our own. Whilst…